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Only 2 out of 33 delisted companies bought back shares from public
2/12/2006
Only two out of 33 companies delisted from the Dhaka Stock Exchange (DSE) on various charges since 1994 bought back shares from the general investors, official sources said, reports BDNEWS.
The two companies, which bought back the shares, are High Speed Shipbuilding Ltd. and Bangladesh Mutual Jute Ltd.
"The current regulations do not give us authority to force companies to buy back shares after being delisted," Chairman of the Securities and Exchange Commission (SEC) Mirza Azizul Islam told the news agency.
Asked, he said the share investors in such cases can make appeal to court for liquidation of the delisted companies for getting back their invested money.
DSE sources said the closing prices of shares of 14 delisted companies were equivalent to their face values, while those of seven companies were higher than their face value at the time of delisting. The closing prices of shares of the remaining delisted companies were lower than their face value.
Ahmad Rashid Lali, vice -- president of the DSE, said introduction of Over the Counter (OTC) market, Reverse Book Building method and the share buy-back system could protect the interest of the general shareholders.
He said the SEC is planning to introduce reverse book building method, while the DSE is bringing some changes in its listing regulations to ensure that the shareholders get back their investment after delisting of a company.
According to the DSE estimate, a total of 1,96,30,855 shareholders, including institutional and general investors, suffered huge losses for failing to get back their investment after delisting of companies.
The 31 companies, which did not buy back their shares after being delisted, are: Chand Textile Mills Ltd., Chand Spinning, Panther Steel Ltd., Anowara Jute Mills Ltd., Specialised Jute Mills Ltd., Paper Converting & Packaging Ltd., Delta Jute Mills Ltd., Gawsia Jute Mills Ltd., Howlader PVC, Aroma Tea, Froglegs Export Ltd., Milon Tanneries, New Dhaka Refractory, Shamser Jute Mills Ltd., Ahad Jute Mills Ltd., Islam Jute Mills Ltd., Bengal Steel Mills Ltd., Karim Pipe, AB Biscuit Ltd., Dhaka Vegetable Ltd., Rupon Oil, Meghna Vegetable Ltd., National Oxygen, STM (ORD) Ltd., GEM Knitwear Ltd., JH Chemicals Ltd., Mark BD Shilpa, Paragon Leather Ltd., and Texpick Industries Ltd.
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